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Derecognition
| This summary of Accounting Standards Board (AcSB) projects has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further deliberations by the AcSB. Decisions to publish Handbook material are final only after a formal ballot process. |
Status: Amendments to derecognition disclosure requirements under development.
The IASB is developing new disclosure requirements for the derecognition of financial assets that will converge with US GAAP. The IASB expects to issue the new disclosure requirements in the third quarter of 2010.
Background
Activities to Date
Next Steps
Related Information
Contact Information
In 2010, the IASB and FASB agreed that their near-term priority with regard to accounting for the derecognition of financial assets should be on increasing the transparency and comparability of their standards by improving and converging US GAAP and IFRS disclosure requirements.
In 2009, the IASB issued an Exposure Draft proposing amendments to IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 7, Financial Instruments: Disclosures, on derecognition of financial assets and liabilities.
The AcSB also issued an Exposure Draft proposing to incorporate the amendments to IAS 39 and IFRS 7 proposed by the IASB into Part I of the CICA Handbook – Accounting.
To solicit and discuss the views of Canadians on the application of the IASB’s proposals in Canada, the AcSB staff held a roundtable on June 22, 2009. AcSB staff also consulted with other stakeholders on the proposals.
On July 31, 2009, AcSB staff submitted a comment letter responding to the IASB’s Exposure Draft. The letter does not support the proposals because they are not considered an improvement over the existing provisions in IAS 39. The letter does support the “alternative view” summarized in the accompanying Basis for Conclusions, with some concerns to be resolved. The AcSB staff letter posted by the IASB is available here.
In June 2010, the IASB and the FASB decided their near-term priority should be improving and converging US GAAP and IFRS disclosure requirements for financial assets transferred to another entity. Recent changes to US disclosure requirements are very similar to the proposed changes to the disclosure requirements included in the IASB’s 2009 Exposure Draft. Therefore, the final IASB disclosure requirements should converge with US GAAP. The IASB and the FASB also agreed to undertake additional research and analysis including a post-implementation review of recent changes to US GAAP, as a basis for determining the nature and direction of any further efforts to improve or converge IFRS and US GAAP. This review is expected to be completed in 2012.
The IASB plans to finalize improved disclosure requirements in the third quarter of 2010.
The final amendments will be issued in Part I of the CICA Handbook – Accounting shortly after they are issued by the IASB.
- Responses to the AcSB's Exposure Draft are available here
- AcSB Exposure Draft “Derecognition (Proposed Amendments to IAS 39 and IFRS 7)”
- IASB Exposure Draft “Derecognition” additional information on the IASB’s Derecognition project
Questions or comments on this project should be directed to:
Nancy Estey, CA
Principal, Accounting Standards
Telephone: +1 (416) 204-3271
Fax: +1 (416) 204-3412
Canadian Accounting Standards Board
277 Wellington Street West
Toronto ON M5V 3H2 Canada